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How to calculate the custom duties imposed on a goods? I am confusing with the formula provided in the custom rates of a particular country.
For example, in Lien, I produce clothes in Uzbekistan and ship them for sale in Japan. How to optimize the profit of this particular transaction? Let's say I sell the clothes at Indicative Price (IP) from a warehouse located at Nukus to a store in Tokushima
In Uzbekistan (Produce clothes)
IP = $100
Export Tax Rate = 5%
Export Tax = $100 x 5% = $5
Transport, Export = $36.22
All sort of costs have been included in your calculation sheet, however the calculation is not accurate:
transport: it's $1.22 at the moment.
custom duties: 5% export from Uzbekistan+ 30% import in Japan; a total of 35%. 35% of $100 will be $35.
taxes: tax calculation is based on profit not the sales price. let's assume production costs are $60 and you sell it for $100 (indicative price) so you will have to pay 8% of ($100-$60) = $3.2. (8% is current tax rate in Uzbekistan.
The store in Japan will be charged:
$100+$1.22+$35+$3.2=$139.42
If the clothes were to be sold in a store for $500 and the tax rate in Japan is much higher than Uzbekistan, then it would be better to price the clothes at $500 in Uzbekistan.
Hi, this is going to be a little long but I think it'll be worth it for you ;)
Before everything, my math sucks cause I'm on my phone (my new computer is built just no time to set it up fully), so use Wonsons math to adequately compare all possibilities.
I've had personal experience with Japan. Esp with Nano Nano, sure jewelry is a easy market to penetrate with all the required resources however I dominated the watch market as well. Nano nano has made 700+ billion and 400+ of that was profit with tax etc taken off, it currently only brings in 100+ million vs 2-6 billion.
Ok to start here are 2 ring manufacturing plants(brackets are city values mine are about 10% less): Plant 1 (wage 80.75, iq 3.09 value: $26.13 per 1 iq level) Plant 2 (wage 205, iq 6.65 value: $30.83 per iq level)
Uzbekistan, we all love Nukus value $7.71 per iq level
Now I don't have one in Nukus but let's say I'm sending my rings from there to Tokio (Nano nano), according to this it'll be no less (apparently) than $7,150 which sounds accurate based on memory. Kazakhstan to nano is about $6400, however to ship from Nagoya to nano is only $66!
The gold mine which supplied my factories likely was in Nukus, so shipping the bars where only a few hundred tops, I was literally saving hundreds of thousands per turn for every factory I made/ran in Japan even with salary differences (Each factory makes about 2600).
How? The thing is gold has a lower ip. The most I can sell my gold is 12,000 before either no one buys or the ip function blocks me giving that 300 ip error, however gold rings like clothing have a higher ip value and higher quality (hopefully) allowing higher pricing. There's an additional benefit of not paying import fees.
If you plan on doing Japan and want to do clothing, try to stay within a 10 million dollar budget for each division you start up. If you need fabric I've got 63 million units of wool that I've got no use or idea how I even got... Also I can produce everything in Japan as well if you're unable to due to financial/qualification now the person in Japan's government has been great to the country and I've got my doubts it'll change any time soon.
Ok, apparently my orders list is a graveyard of past purchases... Which is a good thing in this case lol anything under 2k is made in Japan, everything came from one of 3 gold mines and sent from one warehouse in Nukus
I'm now confused with the "Export, not lower than" and "Import, not lower than" columns in the Transportation tab of Market analysis. This is because Wonson didn't use the figure in that column when doing calculation, however, you did. Can any veteran helps clarify this?
Basically the game calculates not the value you put but the value the ip is, if your value is higher than ip you get charged that instead (I guess lol)
Basically the game calculates not the value you put but the value the ip is, if your value is higher than ip you get charged that instead (I guess lol)
Yes. That's correct. Calculation of custom duties is based on sales price IF it's more than IP, otherwise IP will be the reference. I.e if you sell the cloths for $80 and IP=$100, you will have to pay the same $35 for import/export.
Similar thing applies to Tax payment and CTIE rates.
Yes. That's correct. Calculation of custom duties is based on sales price IF it's more than IP, otherwise IP will be the reference. I.e if you sell the cloths for $80 and IP=$100, you will have to pay the same $35 for import/export.
Similar thing applies to Tax payment and CTIE rates.
Well, then it would be very wise to setup production base in countries with high tax rate and retail in countries with low tax rate.
Well, then it would be very wise to setup production base in countries with high tax rate and retail at IP in countries with low tax rate.
Nope that's possibly the worst thing to do. It's like making something in Denmark (48% tax) and selling it in Vietnam (7%).
Also ip is game wide like CTIE (I think). The best solution is setting up in the country you're going to sell in unless you already produce in another country and can still get profit after taxes shipping etc, or for some stupid reason the ip/tax is lower than the raw product (some math may be required for items being split).
Unless selling to the public (users) the sole purpose of your factory is to make the highest q for the lowest price to give your stores max profit. Here in Canada some places have HST which allows passing the tax on to the end user which didn't work in-game, so less tax paid is better. (What I mean is: company 1 paid $1 tax but sold the finished product to company 2 for $2 tax, company 2 then sells to a consumer for $3 tax. Company 1 pays $1 tax, company 2 pays $1 tax. Purpose is to attempt to lower production costs)
Actually my steel factory is possibly the best example I have lol, fun fact I have no idea how CTIE works but seems like I'm losing very little money factory floor wise
Most steel sits in a warehouse (currently at 135 mil units), 300k gets sold to the public (profitable) i consume something around 300k.